SEC Proposes Executive-Pay Clawbacks When Companies Restate
The Securities and Exchange Commission (SEC) headquarters in Washington, D.C.
Photographer: Joshua Roberts/BloombergThis article is for subscribers only.
U.S. companies forced to correct accounting failures would have to reclaim a portion of bonuses awarded to corporate bosses under a rule proposed Wednesday by the Securities and Exchange Commission.
The SEC measure, passed on a 3-2 vote, would expand the circumstances under which executives could be punished if their firms restate past earnings. Companies would have to claw back stock or cash bonuses based on erroneous results even if it wasn’t intentional.